As a rule coal cleaning is accompanied by huge amounts of waste that contaminate the environment. The waste contains up to 50% carbon. Besides, the distributed system of heat energy production (small industrial power engineering, municipal boilers, etc.) mostly uses layer combustion of coals. In Russia at the present time the heating industry is in poor condition; the coefficient of carbon burn-out in the boilers is 50-60%, and the boiler efficiency does not exceed 60%. This difficult situation may be efficiently overcome by reequipping the coal boilers on the boilers for combustion of coal-water fuel (CWF). This paper presents the results obtained for the technology of CWF preparation and combustion in vortex furnaces of the boilers. There are also data on new equipment necessary for realization of this technology. It is shown that raw coals, anthracite, coal sludge and the waste from coal cleaning may serve as a basis for CWF production. This work presents examples of pilot industrial applications of coal-water technology. The coefficient of fuel burn-out reaches the values of 95-97%, and the boiler efficiency is 85%.